CalSTRS Forms $200 Million Industrial Joint Venture

America’s second-largest pension fund, the California State Teachers’ Retirement System (CalSTRS) has formed a new joint venture with Dallas-based real estate investment firm Sealy & Company to acquire and develop a portfolio of industrial properties across the country. The venture will be managed by Des Moines-based Principal Real Estate Investors (PREI) and launches with a combined commitment of about $200 million.

“This joint venture combines the vigor of a flourishing, entrepreneurial real estate operating company with the strengths of a successful global institutional investor,” says John Frandson, managing director of portfolio management with PREI. “Together, we expect the result to be a highly productive, well-capitalized acquisition and development partnership.”

The partnership is targeting markets in the Southeastern, South-central and Southwestern regions of the United States, including but not limited to cities in Texas – Houston, Dallas, San Antonio and Austin – as well as Atlanta, Nashville, and Florida locations in Jacksonville, Tampa and Orlando.

CalSTRS has more than 800,000 members and beneficiary recipients and total assets of more than $180 billion.